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Introducing Product Management into your company – part 2

In part 1, I talked about the challenges of introducing product management into an established organization. Here I share hard-learned lessons on how to avoid common pitfalls and start laying the foundation for long-term success.

Start with why

If you’re looking to bring Product Management into your organization, start with this very fundamental question:

Why?

Seriously, why do you really need product management? What problem are you expecting it to solve?

Improved product development processes?

Better requirements writing? (Ick.)

Maintaining feature lists? (C’mon, seriously?)

Being the demo guy? (Groan…)

Project manage software releases? (Get a project manager.)

Some folks believe dedicated Product Management is needed because there needs to be someone to coordinate all product related activities across the organization — in other words, serve as a glorified air traffic control.

While there is certainly a degree of this involved in product management, you don’t need a dedicated Product Management department just to coordinate your organization’s inefficiencies around your product.

Those inefficiencies could be solved by your various departments better coordinating around product activities. Or they could be re-structured and appropriate processes could be developed around them to ensure continuous delivery.

The ‘why’ question is critical because it sets the expectation for the value Product Management is expected to bring to the organization.

It also crystallizes whether there are ways to solve the problems the organization faces through its current structure.

So why would you want Product Management?

Because you fundamentally understand that sustainable growth comes from innovation…

Tha innovation is about creating monetizable customer value

And product management is the chief vehicle to deliver that.

So if you’re hiring a product manager because you’re developing a software and simply need someone to provide requirements to engineering and project manage the delivery, don’t hire a product manager. Hire a project manager who can double up as a business systems analyst.

Prepare the organization

You must understand that Product Management is a disruptive force, a radical change to the way the organization has been conducting its business thus far. The introduction of a product management function will centralize many functions that were previously diversified. (Fragmented?) Senior leadership MUST think carefully if this is something they want to take the organization through and must prepare to shepherd each of the other departments through their change curves.

In other words, ssenior leadership must take an active role in the success of product management.

Who’s your first hire? And where do they sit?

A more senior individual will bring the experience and know-how to take on a more leadership type role, coalesce the organizations around a coherent product strategy and, when the time comes, leverage their personal network to bring in additional product management talent.

For a growing company, taking over many of the product strategy execution aspects off of the CEO, CIO/CTO, founder, etc. is exactly what the first formal Product Management leader would do. As such, you’ll be better off making your first hire at a more senior level, at least VP or Director. Ensuring sustainable success for the position — and, thus, for the product strategy — in an ideal manner means setting it up in terms of stature and position with respect to the other departments.

A common pushback I hear from organizations that have never hired a product manager is they worry a more senior person may not be willing to be as “hands on” and handle the necessary tactical activities that need to be done.

First, that’s silly, frankly. Just make sure in your hiring process you look for a leader who’s willing to and has demonstrable experience getting their hands dirty.

Second, product management is a unique discipline that necessarily requires one to execute tactically while thinking strategically. It’s the thing that sets it apart from many other disciplines.

Now, as a practical matter, it’s possible the company may simply not have the budget to hire a senior level person since such an individual will naturally command a higher compensation. And waiting to have the right budget may not be an option if the company is in crisis mode where it needs someone to step in to pick up activities that are getting dropped. So the company may be forced to opt for a more ‘junior’ product manager.

Regardless of the experience level of the individual and the title of the role, one of the biggest risks here is where to place this individual in the organization. I would still advocate having this person report directly to the senior most executive in charge of product strategy, including the CEO.

Unfortunately, what often happens is the individual is put under Marketing, Sales or Engineering. (Or, worse, “IT”.) The dangers with this approach are well documented.1

The product manager becomes a support role for the primary function of that department, providing content for marketing materials, doing product demos for sales, or writing requirements and project managing deliverables for engineering. No time to do the critical work of understanding market problems and formulating the product strategy.

Who to hire and where they sit are critical decisions to ensure long term success. I once worked for a company that rotated through five directors and seventeen product managers in just six years. A total of twenty-two. Twenty-two!

Ensure senior sponsorship

Ensure there is someone in a senior executive position who is willing to be the champion for Product Management. This has the greatest impact on Product Management’s long-term success.

You need someone at that level to evangelize the value that product management brings to the organization, and provide the necessary air support when political attacks threaten to disrupt it in its formative stages.

Do you feel lucky? Well… do ya?

So far I’ve talked from the organization’s point of view. What if you’re the first product manager in the company?

Here’s what you should do:

Clarify your role

Because expectations may vary widely, it’s important to clarify your role upfront.

If you’re joining a startup, an enterprise with a visionary CEO, or a company with established lines of business, the CEO or line of business may want to continue to act as the product visionary and retain control over the product direction.

In this case, the Product Manager will likely play a more tactical role, working more closely with engineering on product releases, perhaps supporting marketing and sales activities. Your role with respect to setting the product strategy will be strictly as an influencer.

This may be okay if you’re a newly minted product manager or have got only a few years of PM experience under your belt. Your gaps are in understanding the business, the industry, and the go-to-market strategy. If your company is selling to other businesses, you may have gaps in understanding your customers’ business models.

You can reasonably expect to be coached and mentored with respect to these gaps so that over time you can take over more of the go-to-market and strategic aspects of the job.

And if you are the visionary CEO or line of business GM hiring the product manager, you should prepare yourself to mentor your newly hired product manager over the next several years.

Clarify expectations

You need to have a mutually agreed upon definition of success. Clarify how your performance will be judged. Reconcile these with the scope of the role.

If you’re expected to play a more tactical role, yet deliver product innovation…

Or if you’re measured on the number of defects and customer complaints; yet the role is about market insight and setting the product direction…

Or you’re told they want you to be strategic, but you’ll be measured on tactical things like “on-time” delivery…

These are signs of expectations being incongruous with the role.

Or to put it more bluntly: The role is set up for failure and you should RUN AWAY.

As stated earlier, Product Management is an agent of change, because it changes existing business processes, and takes decision making and responsibilities away from current owners. This creates uncertainty.

To the extent reasonable, talk to everyone. Understand their expectations. Share these findings with your hiring bosses to clarify expectations and the role, and ensure they are congruous. Doing this has the added benefit of helping you establish key relationships and building your credibility. (Important!)

Ensure senior sponsorship

I talked above this above. Regardless of whether you’re coming in with the title of “Product Manager” or “VP or Product”, make sure there is a true believer at the senior executive level who will go to bat for you, give you the space to establish yourself into the role, and support your efforts to be targeted and focused.

Which brings us to:

Focus!

Look, you simply can’t do everything. If you’ve done your homework on the role and expectations fronts, identify what you think are the most pressing problems, share them with your stakeholders, gain their buy-in, and focus relentlessly on the top priorities.

Lower level priorities and new problems will crop up, of course, but at least you’ll be able to fall back on the agreement you reached and have a constructive conversation on re-assessing priorities based on new realities. This gives you a much greater chance to get things done while keeping your credibility intact.

Introducing Product Management into an organization can be fraught with ambiguity, unreasonable expectations, and threats from every corner. But with foresight and planning, it’s possible to set it up for long-term success. Either way, it’s going to be a roller coaster. So saddle up, buckle in, and get ready for a wild ride!

1Further reading:
Marty Cagan: Where Should Product Management Live?
Steve Johnson: Where Does Product Management Belong In An Organization?
Rich Mironov: Where Should PM Report?

Introducing Product Management into an Organization

I recently wrote a guest post on the popular OnProductManagement.net blog about the pitfalls to look out for in introducing product management into an established organization. In my next post, I’ll share lessons learned from my experience in how product management can be set up for long-term success. If you have ever been through this experience either on the organizational side or as a product manager, I’d love to get your thoughts.

Many thanks to Saeed Khan for providing me the opportunity!

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